• The key principle is value creation for People, Planet and Profit
• It takes into account the company’s long-term strategic goals
• It also aims to create more external transparency

Of course, one still wants companies to manage the short-term effectively, whilst remaining focused on longer-term objectives. So it is sensible for DSM to base 50% of short-term and long-term incentives on financial targets. The other 50%, however, will be based on “measures such as the introduction of ‘green’ products, energy consumption reduction, reduction of emissions of greenhouse gases and the engagement of the company’s workforce“.

The proposals go to shareholders for approval at the end of the month. Those interested in quick “in-and-out trading profits” will no doubt be dismayed. But those interested in a company’s ability to generate robust profit streams – to be used for the payment of pensions, and other long-term goals – will hopefully give their support.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. Paul is also an invited member of the World Economic Forum’s Global Agenda Council. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.

The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.

Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.